From today's Eighth Circuit en banc opinion in Arkansas Times LP v. Waldrip, written by Judge Jonathan Kobes (I think it's basically correct, for reasons given by Profs. Michael Dorf and Andrew Koppelman and me in our amicus brief in the case, and see Prof. Dorf's follow-up post):
Arkansas Act 710 prohibits state entities from contracting with private companies unless the contract includes a certification that the company "is not currently engaged in, and agrees for the duration of the contract not to engage in, a boycott of Israel." The statute defines "boycott of Israel" as "engaging in refusals to deal, terminating business activities, or other actions that are intended to limit commercial relations with Israel, or persons or entities doing business in Israel or in Israeli-controlled territories, in a discriminatory manner." The Act exempts contracts if a company provides goods or services for at least 20% less than the lowest certifying business, or if the contract has a total potential value of less than $1,000.
The court held that boycotts, in the sense of refusals to engage in commercial dealings, generally aren't protected by the First Amendment, and therefore imposing a no-boycott requirement as a contractual provision isn't unconstitutional, either:
